TMI Blog2017 (10) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... purchasing the tickets from IATA agents on principal to principal basis and therefore, the commission received falls under the category of Business Auxiliary services - Held that: - In the present facts of the case, the appellant rendered the service to the customers, as air travel agent and received the commission from principal IATA agent, who also renders the same service i.e. air travel agent services - the services rendered by sub-agent is also the same and it cannot be different from that of air travel agent services - similar view taken in the case of Commissioner Vs. Zuari Travel Corporation [2013 (7) TMI 911 - CESTAT MUMBAI] - demand set aside. Appeal allowed in part. - Service Tax Appeal No.58209 of 2013 - ST/A/56421/2017-CU[D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support for selling the air tickets, and as such, is liable to service tax under the category of Business Auxiliary service. Therefore, show cause notice was issued to the appellant and demand of service tax amounting to ₹ 33,96,623/- was confirmed on the appellant along with interest and penalties under various sections of Finance Act, 1994. Aggrieved by the impugned order, the present appeal has been filed. 3. With this background, we have heard Shri A K Batra, with Ms. Vibha Narang, learned Advocate for the appellant and Shri Amresh Jain, learned DR for the Department. 4. The main grounds of appeal are: (a) (i) Appellant is using the CRS provided by M/s. Amadeus for the provision of own services of Air Travel Agent. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no agency relationship between the IATA agents among themselves; (iv) The word commission used is a misnomer. It is a discount shared among the agents upon the purchase of air tickets upon the last price. (v) Moreover, service tax on the full basis fare is already paid hence, non-payment of tax on the discount portion is unsustainable (vi) Revenue neutral situation. 5. Learned Counsel for the appellant reiterated the grounds and relied on various case laws to support the above arguments. 6. Learned DR supported the impugned order. 7. First, we examine the issue of payment of service tax on the commission received from M/s. Amadeus India Pvt. Ltd. We find that the issue regarding levy of service tax on the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered by IATA agent is service rendered to the airlines or service rendered to the customers. The Hon ble Madras High Court concluded that the services rendered by the IATA agent is one, that is rendered to the customers, even though the measure of such service tax is the commission received by the agent from the airlines. In the present facts of the case, the appellant rendered the service to the customers, as air travel agent and received the commission from principal IATA agent, who also renders the same service i.e. air travel agent services. In view of the above, we are led to the conclusion that the services rendered by sub-agent is also the same and it cannot be different from that of air travel agent services. The Tribunal ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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